Mr.
Huttenbauer:
The idea behind Agragen is to use biotechnology to engineer camelina to make
bioactive lipids, such as fish oil, and biopharmaceuticals in a sustainable
manner and at a lower cost point than traditional routes of production.

CEOCFO:
What is camelina?

Mr. Huttenbauer:
Camelina is an ancient plant that is thought to have been cultivated in the
Roman Empire as an oil seed crop to produce oil for human use and use as a
lamp oil with the meal used in livestock. It was referred to as
gold-of-pleasure or as false flax. It was first cultivated in N. America in
the mid-1800’s. Camelina is now considered an re-emerging group because of
its value as a feedstock for biofuels. However, we think Camelina’s true
potential lie in its flexibility to produce a large range of molecules using
a biotechnology approach that adds a sustainability component with a plant
that does not outcross well with other plants as it is a self-pollinating
plant.

CEOCFO:
What has happened since the purchase?

Mr.
Huttenbauer:
One of the things we expanded our effort with was our lead compound,
AGR-131. AGR-131 is a biosimilar to a commonly used therapeutic protein. Our
objective was to manufacture something in a more reasonable manner than what
was currently being accomplished in the pharmaceutical marketplace. In some
initial pre-clinical studies, AGR-131 demonstrated at least equivalence to
one the major biologics in the marketplace. AGR-131 is designed to limit
inflammation associated with rheumatoid arthritis, psoriasis and
inflammatory bowel disease. We have also continued with our program in
bioactive lipids, focusing on making biosimilar fish oil in Camelina.
Earlier this year we announced an agreement with DuPont Pioneer to acquire
the genes required to make fish oil and other bioactive lipids in Camelina.

CEOCFO:
You announced last week a significant step forward. What has changed?

Mr.
Huttenbauer:
We had examined the ability of AGR-131 to bind its target molecule, TNFalpha,
at a high affinity and functional work to limit changes in TNFalpha in cell
culture models of inflammation. The results were quite favorable, but what
makes this much more exciting is that the current cost structures of these
drugs in the U.S. are quite high and we look to dramatically reduce the cost
of this particular biopharmaceutical to make it much more affordable for
more people.

CEOCFO:
Would you tell us how it works?

Mr.
Huttenbauer:
This is a classic cytokine trap that essentially eliminates a specific
molecule that produces inflammation in a number of disease. In this case,
the cytokine trapped by the drug is Tumor Necrosis Factor-alpha (TNF-alpha).
Our current lead molecule binds TNF-alpha as well as what is the gold
standard drug in this drug class.

CEOCFO:
What were the challenges in getting to the point where you are now and what
are your next steps?

Mr.
Huttenbauer:
The challenges are all related to funding. A lot of money was spent to get
to where we find ourselves at the moment. The next steps are to continue
preclinical studies and ultimately to go into clinical trials. We have a
very efficient patented method for producing and purifying the protein from
the plant. This method is far cheaper than the current methodology used to
produce similar drugs. This is the major point where cost savings are
realized.

CEOCFO:
Are the medical and pharmaceutical communities aware of camelina?

Mr.
Huttenbauer:
In prior years there has been skepticism about using plants to make
biological-based pharmaceuticals. A number of challenges that resulted in
this skepticism were valid a few years ago and still are for many in the
field, but our patented technology overcomes most of those challenges.

CEOCFO:
What have been the stumbling blocks and has the industry overcome them?

Mr.
Huttenbauer:
I think the industry has pretty well overcome some of the major stumbling
blocks. Our CSO is a medical professor as well and he understands fully the
hurdles that we have to cross but we are now better prepared to do that than
in the past because of science that has been done. These advancements have
alleviated most of the pitfalls of using plants to produce biological-based
pharmaceuticals.

CEOCFO: Is
camelina relatively easy to grow?

Mr.
Huttenbauer:
We have extensive experience in the agronomics and challenges to growing
Camelina. We have grown about 150 thousand acres of it through one of our
other companies. It is easier to grow than canola and similar to wheat. It
grows well in marginal land, requires limited inputs with regards to
fertilization, and grows with limited moisture. It is a short season crop
and is quite adaptable to colder climates.

CEOCFO:
Is this a hardy plant?

Mr.
Huttenbauer:
All plants are susceptible to certain things. We from time to time have rust
occur with a plant. Camelina’s origin is as a weed and it has survived as a
weed. The varieties that we have are rather hardy. If it uses any pesticide
at all, it is very limited because the plant naturally produces compounds
that limit other pest.

CEOCFO: What is your strategy for funding?

Mr. Huttenbauer:
We are envisioning partnering with a larger partner with the capacity to
move products through the clinical trials and through the approval process.
Large pharmaceutical companies do that very, very well. I think that is our
basic strategy. If I may add at this point that Agragen is not a one-trick
pony. We have done a great many things with this plant. For example we have
engineered the plant to make lauric acid, essentially producing a plant that
makes medium chain triglycerides that also contain essential fatty acids. We
currently are involved in transforming the plant so it makes a synthetic
fish oil that has the same fatty acids as fish oil coming out of the ocean.
We envision having the same amounts of docosahexaenoic (DHA) acid in that
plant that you would find in a fish, as well as eicosapentaenoic (EPA) acid.
We also have done work on that plant to produce other industrial chemicals
so we are looking for someone who is interested in a company who can make a
number of diverse molecules with the plant using our biotechnology
experience.

CEOCFO:
How do you get a foot in the door to tell your story?

Mr.
Huttenbauer:
I call upon the people that I know. I am an older entrepreneur in all areas
of agribusiness. I have people who like what I am doing. Does that translate
automatically to money? No. We need the help of people like you who get to
people who are decision-makers interested in Agragen and our technology.
Once they have a heard our story, we anticipate that people will get very
interested, but a key point is to get our story out there. We have a strong
potential anti-inflammatory biosimilar that has already been shown to work
in preclinical studies. With the fish oil, we will leverage co-existing
technology to make this product and the proof of principle has been done by
an academic entity in England, so we know it will work. We just need to get
our story out there.

CEOCFO:
Why are you confident that your vision will take hold?

Mr.
Huttenbauer:
I think the timing is correct to reduce the cost of medicines in the
United States. Anybody that reads their hometown tabloids knows that there
are many pharma products that are out of financial reach for a lot of people
because these products are too costly. In short, we want to provide an
effective, but significantly lower cost alternative.

CEOCFO:
Why pay attention to Agragen now?

Mr. Huttenbauer:
Agragen has some very interesting things to take into the marketplace that
are all very cogent needs in the current in the marketplace. We are working
on low cost biosimilar therapeutic proteins that are in high demand, but
economically unsustainable in our current health care system. As a nation,
we must find less expensive routes for production of these critically
important drugs. In the case of our fish oil, it is addressing something
that is drastically needed as marine sources of omega-3 oils are now
stretched to the breaking point. Aquaculture needs sustainable sources of
these fatty acids. In short, at Agragen we are working on things that are
just simply needed.

“The idea behind Agragen is to use biotechnology to engineer camelina to
make bioactive lipids, such as fish oil, and biopharmaceuticals in a
sustainable manner and at a lower cost point than traditional routes of
production.”- Sam Huttenbauer, Jr.